This bill establishes regulations for lenders to cannabis businesses in Minnesota, proposing new legal language to be added to Minnesota Statutes, chapter 342. It defines key terms such as "borrower," "lender," and "loan," and outlines the fair lending requirements that lenders must adhere to when providing loans to cannabis businesses. Specifically, lenders are prohibited from making loans unless they comply with the established regulations, which include providing borrowers with a detailed itemized list of disclosures at least five days before executing a loan contract. These disclosures must include the loan's interest rate, finance charges, payment schedule, total amount financed, and any balloon payment details.

Additionally, the bill prohibits false advertisements or solicitations related to loans and states that any loan made in violation of these regulations is void, relieving the borrower of any repayment obligations. The effective date for these provisions is set for August 1, 2025, applying to loans offered or made on or after that date. Overall, the bill aims to ensure transparency and fairness in lending practices for cannabis businesses in Minnesota.